financial accounting question

SECOND SEMESTER 2022 ASSIGNMENT 02 (30 marks) ( 36 minutes) The following information was extracted from the accounting records of Sankofa Lid on 30 June 2020: Additional information: 1. The following information regarding property. plant and equipment is available: 1.1 Land and buildings consist of Erf 392, Limpopo, with a factory building thereon. The land was acquired on 1 September 2018 for R1 000000 . A factory building was erected during the current year at a cost of R1 500000 . The company purchased machinery at a cost of R300 000 and paid for installation cost of R25 000 on 1 July 2019. This new machinery was withdrawn from production from 1 August 2019 to 31 January 2020 in which time it was used in the process of erecting the factory building. This cost was not taken into consideration in determining the cost of R1 500000 for the erection of the building. The building was completed and brought into use by management on 29 February 2020 . The land was revalued for the first time on 30 June 2020 at a market value of R1 120000 by Mr Mkefa, a sworn appraiser. 1.2 All machinery and equipment except machinery purchased in the current year were purchased on 1 October 2018. 1.3 One of the delivery vehicles was sold for R50000 on 31 December 2019. This vehicle was originally purchased on 1 April 2017 for R260 000. All other vehicles were purchased on 1 July 2018. 1.4 Non-current assets are depreciated as follows: - Machinery and equipment: straight-line method over 6 years. - Motor vehicles: 25% per annum using the straight-line method. - Buildings; 2% per annum using the straight-line method. 2. Investments consist of the following: - 70000 Ordinary shares in Ziggy (Pty) Ltd at a cost of R105 000. The issued share capital of Ziggy (Pty) Ltd consists of 600000 ordinary shares. The directors valued the shares at R1,20 each on 30 June 2020 . These shares are classified as assets at fair value through other comprehensive income (not held for trading). - 30000 Preference shares in Adam Ltd at a cost of R60000, purchased for speculative purposes. The issued share capital of Adam Ltd consists of 300000 ordinary shares and 50000 preference shares. The shares of Adam Ltd are traded on the JSE and the market value of the preference shares on 30 June 2020 amounted to R3 per share. 90000 Ordinary shares in Nkosi Ltd at a cost of R90 000. The issued share capital of Nkosi Ltd consists of 120000 ordinary shares. The market value of the investment was R100 000 on 30 June 2020. 3. Inventory is valued at the lower of cost or net realisable value. At the 2020 year end the directors determined that the net realisable values of the inventories were as follows: - Raw material: 3% below cost - Work in progress: 2% above cost - Finished goods: 8% below cost 4. The long-term loan to Kwasi Ltd granted on the 30 June 2020, bears interest at a rate of 13% per annum payable monthly in arrears. The loan is secured by a first mortgage bond over the company's immovable property. The loan is repayable in full on 30 June 2030. 5. On 30 June 2020,20000 ordinary shares were issued at R1,25 each. No entries have been recorded as yet. REQUIRED: Prepare the "Asset" section of the statement of financial position, as well as the relevant notes of Sankofa Ltd as at 30 June 2020 to comply with the requirements of International Financial Reporting Standards (IFRS). SECOND SEMESTER 2022 ASSIGNMENT 02 (30 marks) ( 36 minutes) The following information was extracted from the accounting records of Sankofa Lid on 30 June 2020: Additional information: 1. The following information regarding property. plant and equipment is available: 1.1 Land and buildings consist of Erf 392, Limpopo, with a factory building thereon. The land was acquired on 1 September 2018 for R1 000000 . A factory building was erected during the current year at a cost of R1 500000 . The company purchased machinery at a cost of R300 000 and paid for installation cost of R25 000 on 1 July 2019. This new machinery was withdrawn from production from 1 August 2019 to 31 January 2020 in which time it was used in the process of erecting the factory building. This cost was not taken into consideration in determining the cost of R1 500000 for the erection of the building. The building was completed and brought into use by management on 29 February 2020 . The land was revalued for the first time on 30 June 2020 at a market value of R1 120000 by Mr Mkefa, a sworn appraiser. 1.2 All machinery and equipment except machinery purchased in the current year were purchased on 1 October 2018. 1.3 One of the delivery vehicles was sold for R50000 on 31 December 2019. This vehicle was originally purchased on 1 April 2017 for R260 000. All other vehicles were purchased on 1 July 2018. 1.4 Non-current assets are depreciated as follows: - Machinery and equipment: straight-line method over 6 years. - Motor vehicles: 25% per annum using the straight-line method. - Buildings; 2% per annum using the straight-line method. 2. Investments consist of the following: - 70000 Ordinary shares in Ziggy (Pty) Ltd at a cost of R105 000. The issued share capital of Ziggy (Pty) Ltd consists of 600000 ordinary shares. The directors valued the shares at R1,20 each on 30 June 2020 . These shares are classified as assets at fair value through other comprehensive income (not held for trading). - 30000 Preference shares in Adam Ltd at a cost of R60000, purchased for speculative purposes. The issued share capital of Adam Ltd consists of 300000 ordinary shares and 50000 preference shares. The shares of Adam Ltd are traded on the JSE and the market value of the preference shares on 30 June 2020 amounted to R3 per share. 90000 Ordinary shares in Nkosi Ltd at a cost of R90 000. The issued share capital of Nkosi Ltd consists of 120000 ordinary shares. The market value of the investment was R100 000 on 30 June 2020. 3. Inventory is valued at the lower of cost or net realisable value. At the 2020 year end the directors determined that the net realisable values of the inventories were as follows: - Raw material: 3% below cost - Work in progress: 2% above cost - Finished goods: 8% below cost 4. The long-term loan to Kwasi Ltd granted on the 30 June 2020, bears interest at a rate of 13% per annum payable monthly in arrears. The loan is secured by a first mortgage bond over the company's immovable property. The loan is repayable in full on 30 June 2030. 5. On 30 June 2020,20000 ordinary shares were issued at R1,25 each. No entries have been recorded as yet. REQUIRED: Prepare the "Asset" section of the statement of financial position, as well as the relevant notes of Sankofa Ltd as at 30 June 2020 to comply with the requirements of International Financial Reporting Standards (IFRS)